What Insurance to Use If You Crash Your Car Into a House?

When a car crashes into a house, it creates a complex situation involving various insurance policies. Understanding how different coverages apply is crucial for navigating the aftermath. This article explains the typical insurance coverages involved in a car-into-house scenario, detailing how they address property damage and personal injuries.

Damage to the House

If a car crashes into a house, the at-fault driver’s property damage liability coverage is typically the primary source for covering the damage to the structure and its contents. This coverage is designed to pay for repairs to another person’s property, including buildings, fences, or other structures, up to the policy’s specified limits. If the damages exceed the driver’s liability limits, the homeowner might be responsible for the remaining costs out-of-pocket.

The homeowner’s insurance policy can also provide coverage for the damage to the house, its attached structures, and personal property inside. Most homeowner policies cover damage caused by a vehicle. If the driver’s insurance is insufficient or if there are disputes about fault, the homeowner can file a claim under their own policy. In such cases, the homeowner’s insurer will typically pay for the repairs, minus the homeowner’s deductible, and then seek reimbursement from the at-fault driver’s insurance company through a process called subrogation.

The scope of damage covered by these policies can include structural damage to the house, such as compromised walls or foundations, and damage to external structures like garages or fences. It also extends to personal property inside the house that may be damaged or destroyed in the impact, like furniture or appliances. Landscaping elements on the property, such as trees or gardens, that are impacted by the collision may also be included under the property damage coverage.

Damage to Your Vehicle

The damage to the vehicle itself is typically covered by the driver’s own auto insurance policy, specifically through collision coverage. This type of coverage pays for repairs to your vehicle if it collides with another object, regardless of who was at fault for the accident.

Collision coverage usually comes with a deductible, which is the amount you must pay out-of-pocket before your insurance coverage begins. For example, if your car sustains $5,000 in damage and you have a $1,000 deductible, your insurance company would pay $4,000. If the cost of repairs exceeds a certain percentage of the vehicle’s actual cash value, the vehicle may be declared a total loss. In such a scenario, the insurance company would pay out the vehicle’s actual cash value, minus your deductible, and take ownership of the damaged car.

Injuries Sustained

Injuries to the driver, passengers, or occupants of the house are addressed by specific types of auto and health insurance coverages. For injuries sustained by the driver and passengers within the vehicle, Personal Injury Protection (PIP) or Medical Payments (MedPay) coverage from the driver’s auto insurance policy would apply. These “no-fault” coverages pay for medical expenses, and in some cases, lost wages and essential services, regardless of who caused the accident. PIP coverage can vary by state, with some states requiring it and others offering it as an optional add-on.

If individuals in the house or others outside the vehicle are injured due to the at-fault driver’s actions, the driver’s bodily injury liability coverage would be triggered. This coverage helps pay for medical expenses, lost income, and pain and suffering for those injured by the at-fault driver. If these limits are insufficient to cover all damages, the injured parties might pursue further compensation directly from the at-fault driver or through other available insurance.

Personal health insurance can also be utilized for medical expenses following such an incident. It might act as a secondary payer after auto insurance coverages like PIP or MedPay are exhausted or if they do not cover certain medical costs. Health insurance typically covers medical treatment, hospital stays, and prescription medications, but generally does not cover non-medical expenses like lost wages. Coordination between health insurance and auto insurance can occur to ensure all medical costs are appropriately covered.

Filing and Coordinating Claims

After ensuring the safety of all involved parties and addressing any immediate medical needs, the initial steps involve contacting emergency services and documenting the scene. Notify local law enforcement to create an official police report, which will be valuable for insurance claims. Gather details such as contact information for all involved parties, witness statements, and photographic or video evidence of the damage to both the vehicle and the house. Obtaining repair estimates for the damaged property can also help expedite the claims process.

Promptly notify all relevant insurance companies. This includes your own auto insurer, the homeowner’s insurer (if you are the homeowner), and potentially the at-fault driver’s insurer. You can initiate a claim online, through a mobile application, or by phone with your insurance provider. Providing accurate information about the incident to each insurer will facilitate the processing of your claims.

In situations involving multiple parties and types of damage, the various insurance companies will coordinate to determine primary and secondary coverage. For example, the at-fault driver’s property damage liability insurer would typically be the first to pay for house damage, with the homeowner’s policy potentially covering any remaining costs. Your role as a policyholder is to cooperate by providing any requested documentation or information to each insurer. Maintaining detailed records of all communications, submitted documents, and expenses incurred throughout the claims process is highly recommended.